December 5, 2006
Hon. H. Coonan
Minister for Communications, Information Technology and the Arts
Parliament House
CANBERRA ACT 2600
Dear Senator Coonan,
I refer to the November 23 letter from Natasha Maclaren-Jones, an Assistance Adviser in your office, responding to my letter to you of September 26.
Ms Maclaren-Jones has done little more than find a vague off-the-shelf letter spinning about Australia Post and typed in my name. She has not responded to my letter.
So that you may not claim an AWB style defence, I ask that you revisit my September 26 letter.
It is important that you know what your policy in relation to Australia Post is doing to small business. It is important that you know how Australia Post is interpreting the Act you passed to serve its profit purposes, and therefore the Government’s, by taking revenue from small businesses like mine.
Every day, at newsXpress Forest Hill, we battle with a Government owned Post Office for the sale of items which until a few years ago were not sold at your Post Offices. Now, thanks to the power of the postal brand and their monopoly on postal products, you are landing customers in your shop for a fraction of what I can land them in mine.
In 1999, your Government facilitated the deregulation of newsagencies. You took away our exclusivity and allowed others to cherry pick our top selling magazines and newspapers. As a result, newsagencies like mine have been left with a supply model which is fundamentally flawed and a significantly higher customer acquisition cost. Your deregulation has left newsagents severely disadvantaged.
I agree that deregulation of the supply of newspapers and magazines was appropriate. However, since you did not put in place any review process, you do not have data to show what a mistake you made and how much you have hurt this small business channel. Good governance requires you review the impact of such significant deregulation on the 4,600 family businesses affected.
Australia Post has seized on the deregulation you brought about and now your Government is profiting from these regulatory changes.
I do not want you to have an AWB defence when newsagencies close down or go broke.
I do not want you to be able to say “I was not advised about thisâ€. This letter and my earlier correspondence advises you.
Deregulation of newspaper and magazine supply, while necessary, went too far and left newsagents with a model which burdens us with costs far greater than our competitors.
Australia Post is selling products which fall way outside what is permitted under the Act. Their Last minute gifts catalogue, which was released yesterday, provides proof. I have enclosed a copy for your information.
Australia Post is looking more like a newsagency every day. Newsagents cannot compete because we do not have the exclusive postal product which drives people to Post Offices. Australia Post is abusing its exclusive postal products and government ownership to the detriment of small business newsagents.
These are policy matters and go to heart of the Government’s small business credentials. I urge you to act for your small business constituents and not just the an enterprise the Government wholly owns.
Sincerely,
Mark Fletcher
Director
Springfield Consulting Pty Ltd trading as newsXpress Forest Hill